Herpetologists describe toad warts as the brownish-red glands located on either side of the toad head. They are parotoid glands on the toad that contains mucous and poison. Warts are a defense mechanism against anything that would harm them. When scared or roughly touched, the toad releases this mucous as thick white gel called bufo toxin. This gel, even in small amounts, like the amount found after handling the toad, can cause death or produce intense internal pain and heart problems. Some toads squirt the toxin at enemies. Pets are extremely vulnerable. Because of this poison, handlers of toads should wash their hands and refrain from touching anything until doing so. You should not allow children to put their fingers in their mouth even after handling a toad.
Toads are not the only creature that uses bufo toxin as a defense. Other amphibians, like salamanders and some frogs, plants, and mushrooms also employ it. Frog scientists have concluded that it takes a trained in some cases to know the difference between a frog and a toad because some frogs have rough skin and some toads have smooth skin.
Unlike warts in people, warts on toads do not suggest a skin problem nor are spread by touching them. Warts come from a virus, the human papilloma virus. This virus also can cause cervical cancer. One hundred different types of papilloma virus exist. The virus comes when you have cut yourself on something. How fast the warts go away depends on how strong the person’s immune system is. This is one reason why children and young people get to get them more often than older people.
The Chinese use toad skin as a cure for heart diseases, and several drugs use bufotenine as a stimulant in the heart.
Once you get a wart, they are hard to get rid of. Freezing the warts away with a liquid chemical, using antibiotics from the doctor, and slicing and dicing them away are options. However the most painless way is just to wait them out. Warts will go away by themselves. Keeping the area clean will speed the healing. Something to keep in mind is that warts are contagious so if you know someone who has a wart don’t touch it or you too will have the virus and have to wait for it to leave. Therefore, teaching children to stay away from the bumps on a toad has its merit, but explain that warts are contagious, and touching them spreads them around.
Source; Does touching toads give you warts http://health.ninemsn.com.au/whatsgoodforyou/theshow/693981/does-touching-toads-gives-you-warts